Invest in renewable heat generation for retirement homes

Rendesco

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“Heat generation accounts for 40% of CO2 emissions in the UK, with only 1% of our heat coming from a renewable source. With an increasing awareness of climate change surely we can do better.

Ground source heat pumps are a tried and tested renewable technology, which directly benefit the environment and make excellent commercial sense for the end user."

Julian Sowerbutts, Rendesco

Rendesco

Rendesco’s principal activity is the design, installation and maintenance of renewable ground source heat pump systems for clients in the new build retirement home sector. A ground source heat pump effectively performs the same role as a boiler in a central heating system but uses ambient renewable heat from the ground rather than burning fossil fuels to generate heat.

Rendesco designs, installs and maintains the ground source heat pump system, all free of charge to the property owner. In return, Rendesco receives index linked payments under the UK government’s Renewable Heat Incentive (RHI) scheme over 20 years which provides a return on its investment.

Over the last three years, Rendesco has successfully installed 19 systems in new build developments for its retirement home clients and a further 26 are currently in progress.

The bond offer

The Rendesco bond offer seeks to raise up to £5.5 million for the company which will be used to finance new installations for clients over the next three years. Rendesco has partnerships with two of the leading retirement home developers in the UK, both of whom have significant growth plans.

With the proceeds of this bond offer, Rendesco is expected to achieve 100 ground source heat pump systems under management by the end of 2020, and at the same time enable its clients to save both money and 4,273 tonnes of CO2 per annum compared to using a gas boiler.


IFISA eligible

Rendesco bonds are eligible to be held in a Triodos Innovative Finance ISA (IFISA). Individual Savings Accounts (ISAs) offer investors and savers a tax efficient way to save or invest. The IFISA is a type of ISA that allows you to include bond investments that have been made via crowdfunded offers and as with all ISAs, you receive interest tax-free.

To invest in Rendesco bonds through a Triodos IFISA, after reading the bond offer document, select the 'Invest through IFISA' option. This selection will open a current year IFISA.


Transferring an existing ISA

If you want to invest by transferring an existing ISA to a Triodos IFISA, you must first request the transfer. You can do this under 'Account' once you've become a registered user on the platform. Learn more about the IFISA


This offer page is for people intending to invest less than £89,000. If you wish to invest £89,000 or more please get in touch with us.

Key terms

Issuer

Rendesco Holdings Limited

Target amount

£4,350,000 (of a total raise of £5,500,000)

Term

7 years, subject to early repayment option.

Minimum investment

£500. For investments of £89,000 or more please get in touch with us.

Interest

7% gross per year (paid net of UK basic rate tax unless held in a Triodos Innovative Finance ISA). Payment of interest and repayment of capital are not guaranteed.

Security

The bonds are secured by way of a debenture over the company's assets. This asset security does not mean that capital or interest payments are guaranteed in any way.

Early repayment

Rendesco has the option to repay the Bonds in full or in part, without penalty, at any time three years after the issue date. Any capital repayment between 18 months and 3 years of issue will result in a penalty payment to bondholders equal to six months of interest.

Transferability

Bonds are transferable but are not listed on any investment exchange which means they are illiquid and investors should be prepared to hold them for the full 7 year term.

Covenants

A restriction on repayment of the shareholder loan or payment of any dividends by the company until the bonds are repaid in full.

Timetable

2 February 2018 until 4 April 2018 (unless fully subscribed earlier or if the directors, at their sole discretion, decide to extend the offer).

Risk warning

Past performance is not an indication of future performance. Capital is at risk and returns are not guaranteed.

Payment of interest and capital is not guaranteed and is dependent on the continued success of Rendesco’s business model.

Download the offer document

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7%
  • £293,649 of £4,350,000
  • 41 Days left
  • 7% raised
Minimum investment

£500

Term

7 years

Interest

7% per year

Tax relief

IFISA eligible